Paraguay Falls Short on Anti-Money Laundering and Terrorism Financing Measures

A recent report has highlighted significant shortcomings in Paraguay’s anti-money laundering and combating the financing of terrorism (AML/CFT) framework. The assessment, which aimed to evaluate the country’s policies and procedures, revealed a low level of awareness about money laundering and terrorism financing risks among both public and private sector entities.

Gaps in AML/CFT Framework

The report identified several gaps in Paraguay’s AML/CFT framework, including:

• Lack of Provisions to Freeze Suspected Terrorist Assets: The country does not have provisions to freeze suspected terrorist assets, as required by relevant United Nations Security Council resolutions.
• Low Awareness Among Public and Private Sector Entities: The level of awareness about money laundering and terrorism financing risks is low among both public and private sector entities.

Risk of Becoming a Haven for Illicit Funds

Experts warn that this lack of action puts Paraguay at risk of becoming a haven for illicit funds and terrorist financing. The report emphasizes the need for Paraguay to strengthen its AML/CFT framework and increase public awareness about these critical issues.

Call to Action

In light of these findings, international organizations and experts are urging Paraguay to take immediate action to address the gaps in its AML/CFT policies and procedures. This includes implementing measures to prevent money laundering and terrorism financing, as well as increasing transparency and accountability within the financial sector.